Featured Product

    FCA Issues Letter to CEOs on Quality of Prudential Regulatory Returns

    February 19, 2018

    FCA published a letter requesting the CEOs of IFPRU investment firms and BIPRU firms to review their regulatory reporting practices. The CEOs are requested to ensure that the regulatory reporting practices are fit for purpose, comply with the relevant reporting provisions, and produce materially accurate data. FCA plans to review a sample of firms’ returns, as of October 01, 2018. If it finds that firms continue to submit materially inaccurate, incomplete, and/or poor quality data, it will then consider the next steps to improve the standards of returns.

    FCA uses regulatory returns to assess prudential risk and to understand business models, financial positions, and risk exposures of firms, in addition to identifying trends within and across sectors. In its letter, FCA has identified the most common issues observed with returns, which are:

    • Failure to complete the underlying templates within the common reporting framework (COREP) submissions, due to inadequate understanding of the prudential rules
    • Failure to submit certain returns, such as the financial reporting return
    • Incorrectly calculated total sum of risk exposures across various risk categories (for example, market and credit risks), leading to an inaccurate figure for capital requirements of firms
    • Inconsistency in COREP returns—EBA validation rules dictate that certain data points submitted across different templates within COREP should show identical values or equal the sum of a number of other values
    • Reporting using incorrect units
    • Not reporting cumulatively (on a year-to-date basis) on the FSA002 income statement

     

    Related Link: FCA Letter (PDF)

    Keywords: Europe, UK, Securities, Reporting, COREP, Prudential Returns, FCA

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7307